Supermarket Income REIT has bought the freehold of a Tesco superstore on Lime Trees Road in Bristol for its newly launched supermarket-focused REIT.
It bought the 55,000 sq ft store for £28.5m at net initial yield of 4.9%. It has an unexpired lease term of 13.5 years, subject to annual upward-only RPI-linked rent reviews.
The acquisition is the second since the company’s listing was funded with equity proceeds of the IPO. Senior debt finance is expected to be introduced in the near term.
The 5.7-acre site also more than 450 parking spaces.
Ben Green, director of investment adviser Atrato Capital, said: “This Tesco superstore is situated in a prime Bristol location and has a long history of strong trading performance. This investment will deliver an attractive inflation-linked income stream and offers excellent asset upside potential over the longer term.”
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